Well it looks like the month of May (and the depressed auto sales figures released today for April I am sure) has brought the lease rates down a tad.
I did not run the payment but just looking at the price I guesstimate you're near invoice. with the dealing I recently experienced and what other have been claiming, you should be shooting for at least 1000 below invoice.
My payment for an SE V6 was 185 + 6.5% tax (197). Not half but alot lower. Also, the dealer may have written my lease at a higher residual than allowed when they included aout 1,800 worht of dealer installed options to calculate it. I was not interested in any of the options and was actually expexting a payment of 205 + tax, but the higher residual lowered the payment. I was about 1000 below invoice though. Your quote from the "non-commisioned" is around invoice. In addition, the SE V6 has a stronger residual than the EX (70% for 24mo 12k miles) in addition to a $900 factory discount on the sticker that is added back in to calculate a higher residual.
What you should do is not talk leasing with them until you get the price down acceptably. Once they start moving you eventually need to make them aware that you will be using a Honda program to pay for it.
Rule of thumb. On a 24 mo lease, for every 1000 they reduce the price (or you pay as down payment/cap reduction) will lower the payment approximately $45.
Some additional price info/ammo: I'm in a different part of the country (SF Bay Area) but recently was quoted $21,988 for an EX-L 4 cyl AT with leather (pretty close to your price for cloth interior).
Thanks for the reply. I knew that was a high price. Since I don't know how to calculate the rate, can you tell me what the rate should be based on the numbers that I provided?
I had 5 dealers competing for my business. It came down to 2 dealers and after all said and done I got a 2007 Accord LX, 4 cyl for $2000 down (included eveything) and $199.37 a month for 3 years. I'm at 7% tax and 12,000 miles a year.
Based on the numbers you've provided here's how the lease would break out, assuming you're paying tags, title, dealer document fees and first month's payment up front (in California this would be approximately $200 for tags and title, $55 to $75 dealer document fees and your first month's payment):
Sale price of $21,899 plus acquisition fee of $595 equals a cap cost of $22,494. With a money factor of .00078 for a 24 month lease term we end up with a payment of $294.76 per month plus 6% tax equals a total payment of $312.45 per month.
Here's a way to calculate your payment based on whatever numbers you have:
(cap cost - residual) / term = monthly depreciation (cap cost + residual) X money factor = monthly interest monthly depreciation + monthly interest = monthly payment before sales tax
Using your numbers: (22,494 - 16,143) / 24 = 264.62 (22,494 + 16,143) X .00078 = 30.14 264.63 + 30.14 = 294.76 monthly payment plus tax
Here's a very handy lease calculator (Excel spreadsheet) that let's you easily plug in various numbers http://www.carbuyingtips.com/download.htm Scroll to the bottom of the page for the "Lease Monthly Payment Calculator Spreadsheet".
After a miserable April for U.S. auto sales for most all manufacturers it's a great time to get a new car.
Honda posted sales for April at -9.1% compared to April last year. So far for the year they report sales of +1.6% over same period last year. U.S. industry total is -7.6% April 07 compared to April 06 and -2.9% first four month comparison.
Honda.com is showing the "national" lease special available on V6 coupes and sedans only and low purchase apr on all Accord models (in addition to regional specials). Apparently the rate is now .00078 however in the example on their website it seems the residuals have been adjusted. The EXL V6 dropped from 57% to 56%.
So down 3,000 Accords for 4/07 VS 4/06, but up 13k Accords YTD for 07. So they are not hurting, for sure. April 2006 was the "best ever" for Honda, so getting really close for April 2007 is not a bad month.
Since we know the redesigned Accord is due in a few months, even good sales are not likely to slow the deals. They want to be out of MY2007 Accords when the new design hits the lots. So we have cheap money (in my area 1.9% to 4.9%) and the lease deals shown have come down some.
Note that the residuals normally drop every few months throughout the model year to reflect the lower future value.
Honda is the one that sets their prices and incentives, not the "financial market". If Honda is happy with sales and does not have a large days supply of a model sitting then they are not inclined to offer dealer money, cheap loans/leases, or both. If they want to spur sales or have excess cars on lots and in the pipeline, then they take action.
The numbers for Honda overall did not look that bad at all - certainly nothing that would cause them to have widespread incentives. So of their models are really selling slow - Ridgeline, Ody, Element, S2000 - and will continue to have incentives on them and maybe even better ones. The S2000 lease deal is not hot, but it still looks like they have the $2k dealer incentive on them. This did not work last month and probably will not help this month either.
Looking to lease a SE 4cyl 4 door. It would be a 12,000 mile year What are the risiduals and MF's right now? I see a lot of different rates listed. Does $13181.60 sound right for pay off amount?
Thanks Shane
PS I've been getting quotes in the $19,186 to $20,500 range
Not exactly sure what you're trying to say. I was just stating the April results and wondering what May might bring. You don't think they're bad. That's great. However, Honda is a publicly traded company and I'm sorry but investors and Wall Street analysts do indirectly dictate how a company reacts to market conditions.
Looking at the ExL V6, the Mf dropped from .0009 to .00078 but with the residual dropping from 57% to 56% per my calculations the monthly payment actually increasing several dollars (I just leased at the end of April so i am happy . Wonder if Honda offsets the residual change with the MF change. Any ideas?
I think it's more of a coincidence than something Honda planned. I bet they lowered the money factor to get rid of more Accords before the newly designed ones hit the showroom floors. And like any other vehicle, every month it depreciates a little more, so that would be my guess for the drop in residual.
I was informed this morning by a northern Florida dealer that the residual for the SE V6 24mo/15k residual has dropped from 69 to 63%! Glad I got my wifes car saturday!
What dealership did you get this deal from in MD? I take for granted the dealer was in MD b/c your taxes are for MD.
All the lease quotes I have been getting for EX-L, V6 w/ navi are either $2-3k upfront and payments in high $3s or low-mid $4s. I have been getting quotes in VA primarily.
my car does not have NAV so figure at least $50 more (if you assume $1800 on the selling price and dividing by 36, it would probably be more once residualized but that is a rough estimate. Also crunch the numbers yourself. I made a spreadsheet with price at invoice, 500 below etc. so I knew if they were trying to pull a fast one. If you are asking for a lease quote make sure to tell them super preferred and $0 down. Even preferred credit will increase the monthly payment by $40 given with much worse MF. The quotes you are getting are the standard Honda lease deal on the web (some dealers kept sending me the link even after I emailed them again telling them $0 down, apparently they dont want to get up and actually crunch the numbers). Also you might want to ask them for a quote for the vehicle price, not for a lease. I leased my car from Northwest Honda - they matched another dealership's quote. Hope this helps. You should be able to get the same deal closer to home.
Thanks so much for the prompt response. I have obtained quotes from Northwest Honda as well they provided the most reasonable in all the quotes I had obtained until I recieved $399/month, security deposit waived and only 1st payment due of $399 from VA dealer. I believe that pricing is $25,300 for the car.
I would try to get some more quotes I definitely think you can do better. Northwest was higher but matched other offers I had. I only got quotes from dealers in my area so try to get qoutes from them.
Greetings Shane. Honda Finance's current buy rate lease money factor and residual value for a 36 month lease of a 2007 Honda Accord SE 4-cylinder Sedan with 12,000 miles per year are .00078 and 55%, respectively. Your car's lease-end purchase price is based upon a percentage of its full MSRP, including the destination charge and any options that can be residualized.
hi everyone, i am trying to figure out a good lease on either an accord or a civic but my question here deals with the accord only. they have a lease special on the honda website for the lx 4cyl. auto sedan for $199 for 36 months-there is a cap cost reduction of $1405 which is says can be dealer contribution so in theory they are saying 1st month plus acquisition fee and ttl correct? but when i run numbers with $1500 off of invoice i think i can get $200 month including ttl. just 1st month and acq. fee-what do you think? my latest credit score was 777 in case that helps.
Hi lablover2. You should be able to negotiate a selling price that is pretty close to dealer invoice on a Honda Accord right now. The MSRP of a 2007 Honda Accord LX 4-cylinder Sedan is $21,520 and its dealer invoice price is $19,584. If you were able to purchase it at invoice, its zero down, pre-tax, 36 month, 12,000 mile per year monthly payment would be around $223. Your credit score is good enough to qualify for Honda Finance's "Super Preferred" credit tier, so make sure that the dealer you work with uses its buy rate lease money factor of .00078 to calculate your monthly payment.
thanks carman for the info-so if i understand correctly i would be better off taking their special for $199 per month if i could get the dealer to contribute the cap cost instead of me. then i would just add illinois ttl and doc fee correct? i would break even on my trade in but it would lower my taxes due-can they add the tax onto your payment or do i pay them up front? i figure the ttl would add about $30 a month if i can add it in and just walk out with 1st payment and acquisition fee.
I'm not sure, but my interpretation of the advertised deal is that the $1400 cap cost reduction is automatically deducted from the MSRP if you qualify, THEN you have your cash cap cost reduction on top of that. In other words, the STARTING point is about $600 over invoice, then you are contributing ... I'm not sure ... but I think about $1k of your own cash, bringing the total cap cost to about $400 under invoice.
You MIGHT get a dealer to go $400 under invoice, but I wouldn't bank on it. That difference is ... well, conveniently enough, right around carman's quote above. $400 difference will probably bring your payment right to that $223 number ... or very very near it.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
I just got an Accord LX 4 door automatic leased for 36 months 15k annual mileage for 219 a month and 2000 down. The gross capitalized cost is $19949 (agreed upon value $19354). Adjusted capitalized cost (after $1391.70 cost reduction) is $18557.30 Residual value is $12135.20 Acquisition fee 595. so the gross capitalized cost is 19949 I am wondering if this is actually a good deal. My credit score is 720 with little history.
Are the online sites accurate in their listing of the invoice for this car? I've checked several sites and the number I keep seeing is $22,696. After 595 dest fee, total invoice price is $23,291.
Looking to lease this vehicle for 36 mos, and my local dealer quoted me 57% residual with a .00078 MF. Any extra money to be had out there and is $24,000 a fair price for this car?
Also, is there a holdback amount on this car that I can use to negotiate?
Invoice and MSRP prices can change during the model year - normally going up from time to time. The number that is used for your residual is the MSRP on the window sticker of the car you choose. So if you get an "old stock" Accord the MSRP might be a little less, something just off the truck might be a little more.
$23,291 is the invoice I see right now too - if the car has an MSRP of $25,645. $24k sounds too high to me. You should be able to get this car close to invoice (including dealer fee and destination) without much trouble at all.
There is a $750 dealer incentive, but the $750 can't be combined with some of the discounted lease deals - and your MF would indicate that this car has the incentive lease deal on it.
The residual is what it is, set by AHFC and the dealer can't change it.
I would get the dealer to go lower on the price by a bit, then lease it using that cheap rate - or find a dealer that will deal lower on the price.
Of course the above post sounds like a much better deal although I am new to the whole leasing game and have been studying up on the matter, can some leasing expert tell me if this is a ok deal.
I wanted to put more down up front and pay less per month and lower the residual incase I wish to buy it.
07 Accord Coupe EX-L Navigation 3,200 down 299 a month for 36 months Includes taxes+fees Cap cost 25,500 Residual 14,500 15k miles per year
Is this good or should I keep on shopping?
What would be considered good for this car. Any help would be GREATLY appreciated. Thank you all so much! :confuse:
I was able to get the purchase price down to $23,450. The salesperson showed me the invoice, and the amount we listed was correct. Holdback was $501. So the dealer made $660 on that car. It was only on their lot for a week, so they will get most of that holdback amount. A fair deal to me, as they were a pleasure to work with. (and they need to get paid too)
Final monthly payments on our 2007 Accord EX-L (4 cyl), $315 per month. No money due at signing except first month payment and title/reg fees.
I wanted to put more down up front and pay less per month and lower the residual in case I wish to buy it
Two things wrong in that one sentence
You should not put a lot of money into a lease. Why? Your insurance company only has an obligation to pay off the lease bank. So if your car is stolen or totaled they will pay the lease bank what they say is owed - if that amount is LESS than the real value of the car, you get nothing. It is important to have GAP coverage either in the lease contract or with your insurance company, since if the lease bank wanted MORE than the insurance company says the car is worth you would have to make up the difference - if you don't have GAP.
The residual is set by the lease bank and can't be changed by you or the dealer. Paying more up front does nothing to change that. The only thing that does change it is signing up for more miles. Your lease is for 15k per year, which makes the residual 2% lower than a 12k per year lease. If you don't need those extra miles, save the money now and get the 12k lease.
As to your deal, when I see numbers like "$299 a month" I think "this must be a rip off with a price like that". Are you talking an I4 or V-6 coupe? It would appear I4 based o the numbers you post. The invoice is $24,465 on the I4 couple EX-L w/NAV. That is about what you price should be, then add in $595 lease acq fee, TTL fees, and you should be done. Have then raise the MF by 0.0001 so you don't pay security deposit. Then run the numbers. I don't know if you are posting net or gross cap cost and you don't state the MF they are offering you - so I can't tell you much else about the deal.
On a lease, just like a sale, you negotiate the price on the car first - then worry about the lease numbers.
Short leases cost too much. Why? When is the sharpest drop in value for a new car? The day you drive it off the lot. With a 3 yr lease you have a lot of time to spread out the depreciation hit, with a 24 month lease you have less time - normally. Anything less than 24 would just be a silly high payment.
Folks posted some numbers here where Honda last month (by design or mistake) was doing the Accord 24 and 36 month for the same MF and had a high residual on the 24 - the net was the 24 month was the same/less than the 36. This is not the normal case.
If you think you may change your mind or need to get out of the lease early, then leasing is not for you. You would be better off to get a used car that would not lose much in 12 or 18 months. Depreciation on a new car is just too steep for such a short term. With the new design Accords arriving this fall the current models my drop a bit more in value used, so buying a new one now and trying to get out of it in 12-18 months probably is not wise either.
Hey car_man and everybody else. Just got an accord EX-L V6 with nav for $370 per month (that includes tax, and everything else), 36 months, 15k miles per year. I only paid $550 out of pocket. That was for the first months payment, and all the DMV fees (registration, plates, etc...). I thought it was a good deal based on what others I know have paid. But if you do the math, how good would you say this deal was? Thanks!
The car in question was the 07 i4 EX-L with Nav Accord v4 EX-L with nav
MSRP $27,745 CAP cost $25,500 DownPayment $3200 Residual value $14,500 Money Factor .00072 Lease term 36 months 15,000 Miles Monthly payment $299 Includes all taxes, titles, registration and GAP coverage.
I have included the money factor on this post (.00072) since on my original post I did not.
How should I negotiate this deal, What should I tell them I want the numbers to look like for this car? I really really appreciate this help! Thanks again, -N
The $25,500 is gross cap cost (not including your $3,200) or new cap cost (after your $3,200 is subtracted) ?
What is negotiated price of the car?
Invoice is $24,465, if we take invoice plus the $595 acq fee we would get a payment of $321.82 plus tax. Security deposit, first month's payment, taxes, title, and license fees due at signing. If you pay the 0.0001 higher rate and waive the security deposit (if that is not how it is already figured) it would go up to $322.21 + tax per month.
I have no idea what the tax is or what your registration and title fees are, so I don't know what to add to the lease. Keep in mind, if you leased at invoice with only TTL down it would be $322. If I assume $500 of your $3,200 down goes toward TTL, then we take the other $2,700 off of the invoice + acq price we get $223.60 per month plus tax. Even in my 7% state tax state, that would be a LOT less than the $299 payment they quoted you.
You need to:
Get the purchase price of the car down to close to invoice, including dest. and dealer fees.
Let us know what the taxes, title, tags stuff comes out to, then we can see how good or bad the deal is. At this point, it does not look that good.
Hi Dennis, The gross cap is 25,500 Per the dealer he states that the 3200 down includes all taxes, titles and fees, +15K (the extra mileage) for $299 per month. I don't have the breakdowns of all the extra fees, should I tell him I want to see a fax of all the numbers he is working with? I was referred to this person via family and friends that do lots of business with him, we have been working this out over the phone since my work schedule is very crazy. ' What exact pieces of information should I ask him which I have not provided in previous posts which would allow us to better analyze the deal? Thanks again for your help. -N
Get all that stuff itemized, I guess. I know what my taxes, fees, etc are - I guess you do not. Get the list and we should be able to tell you (and check) if each item is fluff or the right number.
Where do you live? I bet you could google up and find out what the fees are for a new lease in your state/county/city and see how they measure up to the numbers he gives you. How much for new tags each year? It is a lot? Some places that is hundreds or thousands of dollars, others it is < $100. See why we can't tell what is going on in your deal?
Sounds like $25,500 is the selling price - which is too high.
Hi again, I am in Los Angeles, CA Edmunds states that the invoice EX-L 2dr Coupe w/Navigation (2.4L 4cyl 5A) MSRP= $27,150 and Invoice $24,594 What would a realistic selling price for this car go for?
You provide much useful information regarding negotiating and calculating leasing etc., however, unless you live in a state with some strange insurance regulations (or some bottom feeder carrier), the statements regarding a loss are inaccurate. Your carrier is obligated to cover the value of the vehicle without regard to the method you chose to finance. The lessor is on your policy as loss payee along with you, but if the vehicle is worth 20k and the payoff is only 17k, they're paying 20k. Been there.
Normal? Maybe not the majority, but since we're in the Honda forum and talking Honda leasing and Honda resale value, 24mo is quite often as good or better than 36mo.
The Accord I recently got was my sixth on a 24 mo lease. It was also one of the lowest payments @ 197 (incl tax; no down) and $20 less than the 36mo payment.
Costs too much? Even if the 24mo was the same or even a little more than 36mo, I'd still take the 24mo. The reason is that not everyone is attracted to leasing solely due to the payment being lower than a purchase loan (although most probably are).
I fully expect to put 30k mikes on this car over the next two years. I also expect to do nothing to this car other than a few oil changes and tire rotations. I'd also be shocked if the Michelin MXM4 Pilot 50's (320 tread wear) would make it to 36k miles. I'm not buying tires before I turn it in. And odds are with a 17.8k residual, it will get turned in and will not have any equity.
Now of course depending on how much someone drives may determine that 36mo would be better for them. Me? I'd rather go 24mo and then extend the lease if I discover that i can go longer without having to spend any maintenance money (brakes, tires, etc.) or maybe just waiting for a better deal on a new one. Extending also reduces the residual (payoff) by the principal portion of every additional payment.
To just say that 36 is better than 24 is assuming and quite often inaccurate. Always evaluate your anticipated needs and options.
Comments
I did not run the payment but just looking at the price I guesstimate you're near invoice. with the dealing I recently experienced and what other have been claiming, you should be shooting for at least 1000 below invoice.
What you should do is not talk leasing with them until you get the price down acceptably. Once they start moving you eventually need to make them aware that you will be using a Honda program to pay for it.
Rule of thumb. On a 24 mo lease, for every 1000 they reduce the price (or you pay as down payment/cap reduction) will lower the payment approximately $45.
BTW - Did you request online quotes from all local dealers through Edmunds or Honda websites? If not I would recommend it.
$ 1300 total out of pocket
36 month 12k a year
$300 a month
I think I did very well. What are others paying?
Sopman
Saratoga Springs, NY
Sale price of $21,899 plus acquisition fee of $595 equals a cap cost of $22,494. With a money factor of .00078 for a 24 month lease term we end up with a payment of $294.76 per month plus 6% tax equals a total payment of $312.45 per month.
Here's a way to calculate your payment based on whatever numbers you have:
(cap cost - residual) / term = monthly depreciation
(cap cost + residual) X money factor = monthly interest
monthly depreciation + monthly interest = monthly payment before sales tax
Using your numbers:
(22,494 - 16,143) / 24 = 264.62
(22,494 + 16,143) X .00078 = 30.14
264.63 + 30.14 = 294.76 monthly payment plus tax
Here's a very handy lease calculator (Excel spreadsheet) that let's you easily plug in various numbers http://www.carbuyingtips.com/download.htm
Scroll to the bottom of the page for the "Lease Monthly Payment Calculator Spreadsheet".
Honda posted sales for April at -9.1% compared to April last year. So far for the year they report sales of +1.6% over same period last year. U.S. industry total is -7.6% April 07 compared to April 06 and -2.9% first four month comparison.
Honda.com is showing the "national" lease special available on V6 coupes and sedans only and low purchase apr on all Accord models (in addition to regional specials). Apparently the rate is now .00078 however in the example on their website it seems the residuals have been adjusted. The EXL V6 dropped from 57% to 56%.
Honda Division Total 111,226 119,752 0.6% 421,773 407,945 3.4%
So down over 8,000 units compared to April 2006, but up 14k for the YTD.
On target for the Accord forum, the numbers were:
Accord * 28,926 31,608 -0.9% 121,516 108,562 11.9%
So down 3,000 Accords for 4/07 VS 4/06, but up 13k Accords YTD for 07. So they are not hurting, for sure. April 2006 was the "best ever" for Honda, so getting really close for April 2007 is not a bad month.
Here is the complete press release
Since we know the redesigned Accord is due in a few months, even good sales are not likely to slow the deals. They want to be out of MY2007 Accords when the new design hits the lots. So we have cheap money (in my area 1.9% to 4.9%) and the lease deals shown have come down some.
Note that the residuals normally drop every few months throughout the model year to reflect the lower future value.
Dennis
April sales down 7.6 percent
Toyota, Honda are among losers; DaimlerChrysler, BMW, Mitsubishi gain
http://www.autonews.com/apps/pbcs.dll/article?AID=/20070501/REG/70501005/1078/FR- EE
The numbers for Honda overall did not look that bad at all - certainly nothing that would cause them to have widespread incentives. So of their models are really selling slow - Ridgeline, Ody, Element, S2000 - and will continue to have incentives on them and maybe even better ones. The S2000 lease deal is not hot, but it still looks like they have the $2k dealer incentive on them. This did not work last month and probably will not help this month either.
Dennis
What are the risiduals and MF's right now? I see a lot of different rates listed. Does $13181.60 sound right for pay off amount?
Thanks
Shane
PS I've been getting quotes in the $19,186 to $20,500 range
But we are drifting off topic so let's bury this.
Can you please tell me which dealership you used. I have
been struggling to get a decent rate.
Thank you!
All the lease quotes I have been getting for EX-L, V6 w/ navi are either $2-3k upfront and payments in high $3s or low-mid $4s. I have been getting quotes in VA primarily.
my car does not have NAV so figure at least $50 more (if you assume $1800 on the selling price and dividing by 36, it would probably be more once residualized but that is a rough estimate. Also crunch the numbers yourself. I made a spreadsheet with price at invoice, 500 below etc. so I knew if they were trying to pull a fast one. If you are asking for a lease quote make sure to tell them super preferred and $0 down. Even preferred credit will increase the monthly payment by $40 given with much worse MF. The quotes you are getting are the standard Honda lease deal on the web (some dealers kept sending me the link even after I emailed them again telling them $0 down, apparently they dont want to get up and actually crunch the numbers). Also you might want to ask them for a quote for the vehicle price, not for a lease. I leased my car from Northwest Honda - they matched another dealership's quote. Hope this helps. You should be able to get the same deal closer to home.
Car_man
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Prices Paid Forum
Car_man
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Prices Paid Forum
You MIGHT get a dealer to go $400 under invoice, but I wouldn't bank on it. That difference is ... well, conveniently enough, right around carman's quote above. $400 difference will probably bring your payment right to that $223 number ... or very very near it.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Residual value is $12135.20
Acquisition fee 595. so the gross capitalized cost is 19949
I am wondering if this is actually a good deal. My credit score is 720 with little history.
I really appreciate your help.
2007 Honda Accord EX(V4 Automatic, cloth)
36 month lease, 12,000 miles per year
$299.00 per month includes all fees, CT 6% tax, new reg
I was also quoted $369.00 per month for 2007 Honda Accord EXL with navigation(same terms as above).
I welcome all comments!!
Comment #2. Enjoy your great new ride.
Looking to lease this vehicle for 36 mos, and my local dealer quoted me 57% residual with a .00078 MF. Any extra money to be had out there and is $24,000 a fair price for this car?
Also, is there a holdback amount on this car that I can use to negotiate?
I'm in west Michigan area.
The EX-L I think has a MSRP around $25,595.
I have been getting quotes in the Low to high $22,000 in the WA state area. Only one quote came back over the $23,000 and it was close to $23,000
Also I was told it was a 58% residule.
Maybe someone can confirm
Hope this helps.
$23,291 is the invoice I see right now too - if the car has an MSRP of $25,645. $24k sounds too high to me. You should be able to get this car close to invoice (including dealer fee and destination) without much trouble at all.
There is a $750 dealer incentive, but the $750 can't be combined with some of the discounted lease deals - and your MF would indicate that this car has the incentive lease deal on it.
The residual is what it is, set by AHFC and the dealer can't change it.
I would get the dealer to go lower on the price by a bit, then lease it using that cheap rate - or find a dealer that will deal lower on the price.
Dennis
You stated that you got
a EXL4cyl. w/Navi also.
$ 1300 total out of pocket
36 month 12k a year
$300 a month,
----
That sounds great! What is your residual price at the end of the lease? Did this include Tax?
I wanted to put more down up front and pay less per month and lower the residual incase I wish to buy it.
07 Accord Coupe EX-L Navigation
3,200 down
299 a month for 36 months
Includes taxes+fees
Cap cost 25,500
Residual 14,500
15k miles per year
Is this good or should I keep on shopping?
What would be considered good for this car.
Any help would be GREATLY appreciated. Thank you all so much! :confuse:
A fair deal to me, as they were a pleasure to work with. (and they need to get paid too)
Final monthly payments on our 2007 Accord EX-L (4 cyl), $315 per month. No money due at signing except first month payment and title/reg fees.
Thank you in advance.
Jason
Two things wrong in that one sentence
You should not put a lot of money into a lease. Why? Your insurance company only has an obligation to pay off the lease bank. So if your car is stolen or totaled they will pay the lease bank what they say is owed - if that amount is LESS than the real value of the car, you get nothing. It is important to have GAP coverage either in the lease contract or with your insurance company, since if the lease bank wanted MORE than the insurance company says the car is worth you would have to make up the difference - if you don't have GAP.
The residual is set by the lease bank and can't be changed by you or the dealer. Paying more up front does nothing to change that. The only thing that does change it is signing up for more miles. Your lease is for 15k per year, which makes the residual 2% lower than a 12k per year lease. If you don't need those extra miles, save the money now and get the 12k lease.
As to your deal, when I see numbers like "$299 a month" I think "this must be a rip off with a price like that". Are you talking an I4 or V-6 coupe? It would appear I4 based o the numbers you post. The invoice is $24,465 on the I4 couple EX-L w/NAV. That is about what you price should be, then add in $595 lease acq fee, TTL fees, and you should be done. Have then raise the MF by 0.0001 so you don't pay security deposit. Then run the numbers. I don't know if you are posting net or gross cap cost and you don't state the MF they are offering you - so I can't tell you much else about the deal.
On a lease, just like a sale, you negotiate the price on the car first - then worry about the lease numbers.
Dennis
Enjoy your new Accord.
Dennis
Folks posted some numbers here where Honda last month (by design or mistake) was doing the Accord 24 and 36 month for the same MF and had a high residual on the 24 - the net was the 24 month was the same/less than the 36. This is not the normal case.
If you think you may change your mind or need to get out of the lease early, then leasing is not for you. You would be better off to get a used car that would not lose much in 12 or 18 months. Depreciation on a new car is just too steep for such a short term. With the new design Accords arriving this fall the current models my drop a bit more in value used, so buying a new one now and trying to get out of it in 12-18 months probably is not wise either.
Dennis
The car in question was the 07 i4 EX-L with Nav
Accord v4 EX-L with nav
MSRP $27,745
CAP cost $25,500
DownPayment $3200
Residual value $14,500
Money Factor .00072
Lease term 36 months
15,000 Miles
Monthly payment $299
Includes all taxes, titles, registration and GAP coverage.
I have included the money factor on this post (.00072) since on my original post I did not.
How should I negotiate this deal, What should I tell them I want the numbers to look like for this car?
I really really appreciate this help!
Thanks again,
-N
What is negotiated price of the car?
Invoice is $24,465, if we take invoice plus the $595 acq fee we would get a payment of $321.82 plus tax. Security deposit, first month's payment, taxes, title, and license fees due at signing. If you pay the 0.0001 higher rate and waive the security deposit (if that is not how it is already figured) it would go up to $322.21 + tax per month.
I have no idea what the tax is or what your registration and title fees are, so I don't know what to add to the lease. Keep in mind, if you leased at invoice with only TTL down it would be $322. If I assume $500 of your $3,200 down goes toward TTL, then we take the other $2,700 off of the invoice + acq price we get $223.60 per month plus tax. Even in my 7% state tax state, that would be a LOT less than the $299 payment they quoted you.
You need to:
Get the purchase price of the car down to close to invoice, including dest. and dealer fees.
Let us know what the taxes, title, tags stuff comes out to, then we can see how good or bad the deal is. At this point, it does not look that good.
Dennis
The gross cap is 25,500
Per the dealer he states that the 3200 down includes all taxes, titles and fees, +15K (the extra mileage) for $299 per month. I don't have the breakdowns of all the extra fees, should I tell him I want to see a fax of all the numbers he is working with? I was referred to this person via family and friends that do lots of business with him, we have been working this out over the phone since my work schedule is very crazy. '
What exact pieces of information should I ask him which I have not provided in previous posts which would allow us to better analyze the deal?
Thanks again for your help.
-N
Where do you live? I bet you could google up and find out what the fees are for a new lease in your state/county/city and see how they measure up to the numbers he gives you. How much for new tags each year? It is a lot? Some places that is hundreds or thousands of dollars, others it is < $100. See why we can't tell what is going on in your deal?
Sounds like $25,500 is the selling price - which is too high.
Dennis
Edmunds states that the invoice EX-L 2dr Coupe w/Navigation (2.4L 4cyl 5A) MSRP= $27,150 and Invoice $24,594
What would a realistic selling price for this car go for?
You provide much useful information regarding negotiating and calculating leasing etc., however, unless you live in a state with some strange insurance regulations (or some bottom feeder carrier), the statements regarding a loss are inaccurate. Your carrier is obligated to cover the value of the vehicle without regard to the method you chose to finance. The lessor is on your policy as loss payee along with you, but if the vehicle is worth 20k and the payoff is only 17k, they're paying 20k. Been there.
The Accord I recently got was my sixth on a 24 mo lease. It was also one of the lowest payments @ 197 (incl tax; no down) and $20 less than the 36mo payment.
Costs too much? Even if the 24mo was the same or even a little more than 36mo, I'd still take the 24mo. The reason is that not everyone is attracted to leasing solely due to the payment being lower than a purchase loan (although most probably are).
I fully expect to put 30k mikes on this car over the next two years. I also expect to do nothing to this car other than a few oil changes and tire rotations. I'd also be shocked if the Michelin MXM4 Pilot 50's (320 tread wear) would make it to 36k miles. I'm not buying tires before I turn it in. And odds are with a 17.8k residual, it will get turned in and will not have any equity.
Now of course depending on how much someone drives may determine that 36mo would be better for them. Me? I'd rather go 24mo and then extend the lease if I discover that i can go longer without having to spend any maintenance money (brakes, tires, etc.) or maybe just waiting for a better deal on a new one. Extending also reduces the residual (payoff) by the principal portion of every additional payment.
To just say that 36 is better than 24 is assuming and quite often inaccurate. Always evaluate your anticipated needs and options.